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Indonesia's Bukalapak gets investment from S.Korea's Shinhan, says valuation $2.5 bln

Indonesian e-commerce firm Bukalapak on Friday said South Korea's Shinhan Financial Group Co Ltd joined its latest fundraising round that valued the startup at over $2.5 billion.

Adds Bukalapak comment, market context

JAKARTA Oct 4 (Reuters) - Indonesian e-commerce firm Bukalapak on Friday said South Korea's Shinhan Financial Group Co Ltd 055550.KS joined its latest fundraising round that valued the startup at over $2.5 billion.

Bukalapak did not disclose the amount it will receive through Shinhan's investment banking unit Shinhan GIB, nor the size of the stake Shinhan would gain.

Other participants in Bukalapak's closing Series F fundraising included Indonesian media conglomerate Emtek, a long-time backer, the e-commerce firm said in a statement.

Bukalapak, whose other backers include Singapore sovereign wealth fund GIC Pte Ltd GIC.UL and China's Ant Financial ANTFIN.UL, raised $50 million in a previous fundraising round in January from South Korean firms led by Mirae Asset Daewoo Co Ltd 006800.KS and internet portal Naver Corp 035420.KS.

Surging smartphone use and rising middle-class income in a country of 260 million people have made Indonesia's e-commerce industry a battleground for foreign investors.

The archipelago's internet economy is the region's fastest-growing and is likely to be worth $133 billion by 2025, showed a 2019 report by Alphabet Inc's GOOGL.O Google, Singapore state investor Temasek Holdings (Private) Ltd TEM.UL and global business consultants Bain & Co.

A spokeswoman for Bukalapak said "the new investment will ensure we have enough capital to execute our long-term strategy and business plan, which includes in our marketplace and (agent network) mitra bukalapak."

Bukalapak previously told Reuters it expected to break even in three years' time, as it adds product segments and expands coverage in small towns.

The company became a unicorn - a privately backed startup valued above $1 billion - after a fundraising round in late 2017.

(Reporting by Fanny Potkin & Ed Davies; Editing by Christopher Cushing)

((f.potkin@thomsonreuters.com;))

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